HBOS May Bid
For U.K. Lender
Abbey National

LONDON -- Britain's HBOS PLC is considering a takeover offer for Abbey National PLC, in a move that could spark a bidding war with rival suitor Banco Santander Central Hispano SA of Spain.

Abbey last week accepted a mostly share-based bid from Santander that valued it at just over &pound;8 billion ($14.56 billion), setting the scene for Europe's largest ever cross-border banking deal. Shareholders have reacted coolly to the relatively cheap price being offered and the fact they would be left holding shares in a foreign...